ATO Commissioner Chris Jordan has announced at Xerocon 2022 that the ATO plan on being fully digested by 2030.
He outlined that the ATO executive group have authorised digital plan that aims for tax to be fully digitised by 2030. The model is based on the OECD’s tax Administration 3.0.
This model enables tax reporting, payment, and audits to happen in real time through the individual and businesses digital systems. Commissioner Chris Jordan explained that this system will eliminate the need for businesses to prepare monthly, or quarterly GST or PAYG withholding and PAYG instalment reporting. This will all happen automatically as you conduct your business.
He summed it all up by saying “it’s a future where tax ‘just happens’”.
As stated by commissioner Chris Jordan, the ATO is required to defend itself from anywhere between 2.5 – 3.5 million cyber intrusions and fraud each month. The ATO are excited to implement these automated systems, as it is designed to cut administrative time, and reduce the risk of fraud.
He went on to say that the ATO are far from sharing the final plan with the public.
Tax Administration 1.0 – Where reporting tax happened after the taxable event, and payment happens as an event later.
Tax Administration 2.0 – Where reporting happens in real time, but payment happens later (current system).
Tax administration 3.0 – Where all reporting, payment and compliance checks happen as you go, Reducing the ATO risk of businesses reporting false information.
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